What is foreclosure and how does it work?

What is foreclosure?

If you do not make your mortgage payments, your lender can try to take your home. The lender does this by starting a foreclosure action against you in court.

How does foreclosure start?

When you miss a few mortgage payments, the lender notifies you that you are behind (in default). If you miss more payments, the lender sends a letter to say that you have violated the terms of the mortgage. You will have about 30 days to catch up with your payments. If you do not make all the payments by the deadline, the lender may start a foreclosure proceeding.

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